Intel, NetApp Ink $1 Billion Deal

Posted on March 07, 2001

Intel and Network Appliance have entered into a 7-year, $1 billion agreement, culminating a long-time business relationship and reaffirming both companies? commitment to develop open standards such as the Direct Access File System (DAFS).

Network Appliance will purchase Intel microprocessors, systems and other components for its network-attached storage (NAS) filers and content delivery systems as part of the agreement. Its newest line of midrange products uses the Intel Pentium III processors and phases out models based on Compaq?s Alpha chip.

The deal also includes a broad technology cross license, patent sharing, advanced technology development, and a cross-purchasing agreement. Detailed financial terms of the agreement were not disclosed.

The formalization of the two companies? relationship, which dates to 1992, may advance the DAFS initiative. Both companies founded the DAFS Collaborative to develop a new specification for more efficiently sharing data among clusters of servers and storage devices. The collaborative, consisting of 60 companies, expects to complete the specification this summer.

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